Please note that KAB Marketing is no longer operating as a consulting and presentations company. The Blog "What's Branding Got to Do with it?" will continue to be published on a regular basis.
It was great to get away to Michigan to celebrate the holidays with family and friends. One of nicest stops was a visit to the Michigan Central RR Station in Detroit. After standing vacant and in disrepair for over 30 years, the station has been restored to its magnificent condition when it was the busiest in US. Thanks to Ford Motor Co., the restoration renewed this showplace and is must visit to the Motor City. Our trip brought back many memories of the holidays and growing up in our first homes. Those memories include many significant places around the country that have been restored and revived thanks to the foresight of local corporations and foundations. Traditions like the Macy’s Parade (and the former Hudson’s Santa Paraded in Detroit), the Biltmore House in Asheville, South Beach in Miami, the new Hudson River area in NYC, and many historic buildings around the country are thriving thanks to the support and investment of successful companies who also have brands that have resonated with customers for years. This time of year always provides many reasons to remember the great family gatherings, celebrations with friends, and memorable shopping experiences at great retailers who not only branded themselves successfully but also supported the communities they served.
This time of year is also the time I make a trip to our local regional mall and the Macy’s store to pick up a traditional gift for Sandi and wander among the shops. This year I was disappoint3ed in the number of vacant stores, the lack of the hustle and bustle of the crowds also doing their Christmas shopping. I thought of my department store years when the holidays brought throngs of locals and visitors to experience the atmosphere in those stores and resulted in families lining up to get on escalators, visiting with Santa, and just soaking in the holiday decorations that we retailers worked very hard to provide. I must admit that I have never missed working on the days after Thanksgiving (wasn’t Black back then), Christmas, and the weekends between the two holidays. The rebirth of downtown areas and city centers in cities large and small over the past few years has recaptured the shopping and friendships that appear regularly in those predictable (yet heartwarming) Hallmark Christmas movies. So let’s contunie to build our brands—not with another sale or promotion—but by building memories and happy times for our customers and fellow citizens.
My Favorite Holiday TV spots that you may have missed this year
SUBARU. Share the love. This auto brand has developed a great reputation with quality vehicles and marketing built on love and commitment to their customers.
Chevy going home. Every year America’s most traditional auto brand creates an epic short story commercial that tugs at our hearts and build the Chevy brand at the same tim
Google lamb photos. Google continues to grow it brand as part of today’s way of life. With this spot, the company also reminds us of the the real meaning of the season.
Meijer thanksgiving dinner shopping. This Midwest food chain has been a pioneer in making food shopping an memorable experience and remembering why family gatherings are always special.
Carhartt Christmas rink and trees. Talk about memories. I worked at Carhartt while in college when they were based in Detroit and sold nothing but durable work clothes. This is a brand that has recreated itself worldwide by adjusting to today’s lifestyles and trends. This really brings back memories of the holidays growing up in Detroit.
Hobby Lobby. Cocoa stand winter. The store replayed this spot again with a message that is memorable as all Hobby Lobby Christmas spots have been for year. They stay true to the company’s brand strategy.
Walmart. I have been a big fan of Walmart marketing since its early years on the retail seen and its continual increases in market share. This year’s campaign leaves me wondering however. Now, I’ve never been a big fan of including Mr. Grinch in Christmas messages and decorations. Just seems anachronistic to me. The “Who knew” campaign starring the green grouch just doesn’t work for me and judging by the smaller crowds at a recent trip to Walmart, it doesn’t work for others.(No link here for this campaign. Won’t waste your time)
It’s great to be back at my desk, in my office, in my home after 14 months in temporary housing as we recover from Hurricane Helene. As I’ve mentioned in my messages during that period, it’s been a challenge both mentally and physically to meet the challenges that we were dealing with on almost a daily basis. However, there were numerous instances where we were encouraged and influenced by the relationships that we built with a variety of sources with whom we joined forces to get back to some normalcy.
Those relationships included the support from our solid network of friends, many of whom were scattered around the country, and others who jumped in to lend a helping hand with the cleanup process. Beyond that support, our family was really responsible helping us through the challenges that often seemed insurmountable. Our kids and grandkids jumped in immediately to help us though this disaster. This included our daughter, Michelle, immediately taking control of all the immediate decisions and contacts that had to be made. As our “COO”, she made the daily contacts to get our insurance claims submitted, to find temporary housing, to setting up numerous meetings with contractors who we could trust and who could get the job done while eliminating many of the headaches of rebuilding our home. Michelle also assumed the role of “CFO” by providing the spread sheets and the voluminous claim materials that accelerated our approvals from the insurance companies and FEMA (who, by the way, handled our case efficiently and effectively). She was joined by her husband, Jeff, who provided much need construction expertise as well as helpful staff who were invaluable. She also built relationships with our banking partners which limited the financial stress that can make or break you. Finally, our faith that God doesn’t allow us to be more challenged than we could handle and who answered our many, many prayers when the going got tough.
This event also provided a good lesson in branding. We relied on time after time with the purchasing of replacements for everything from appliances to toilets to mattresses. These retailers backed their competitive pricing with programs that made the spending less stressful and eliminated the worries of not always making the right purchase decisions. Here are three companies that we relied on every step of the way:
AMAZON. The company continues to amaze me by the having just what you need and helping with easy-to-find information on almost everything you need. The online experience is second to none when it comes to finding what you need, comparing options, and returning something that just isn’t right. Their communications on delivery status, return progress, and refund processing is amazing. In the couple instances when we needed to talk with a human, they were friendly, compassionate and dedicated to resolving the problem. No wonder why this is one of top brands in the world and why there are so many gray trucks on our damaged streets every day.
HOME DEPOT. During the rebuilding process, it seemed like Home Depot warranted a trip by us every day. Sure they always seemed to have just what we needed and to always be helpful to personally help you find just what we were looking for. We had an experience with an appliance salesperson here who went above and beyond by talking with us to determine our needs and budget and then finding one that met our requirements. I have been a fan of Home Depot branding and now am more loyal than ever.
LOWE’S. With the high marks given to Home Depot above, you might wonder how Lowe’s would also get our business during the rebuilding. Lowe’s has developed a loyal customer base with an expertise in appliances, home décor, and service. Many times, we were looking for something that we wanted but couldn’t find. In every case, we found an employee who would walk us to right spot even if it wasn’t in their area of responsibility. Our contractors also found Lowe’s to be a trusted, economical choice for many major purchases.
Of course, there were many more companies that we did business with and most showed sincere empathy for our situation. However, these three brands built a relationship that we feel right at home with.
It’s been nine months since Hurricane Helene destroyed our home. We began the rebuilding process in March and are now rounding the home stretch a completing the construction. As we’ve gone through this process, I was reminded of how long it takes to go through the 5-Step Branding process that I have written about many times in this blog and how important this process is to rebuilding a brand that has weakened in its market. So I thought I would review the process with a comparison of how our construction is coming along well by following a similar process as a brand.
DEFINE. As we started the recovery process, we had to define what exactly we wanted to do. Should we tear down and start over; should we leave it as is and try to sell it; or should file our insurance claims and restore our house to the place we called home for 28 years. The same holds true for rebuilding a brand for a product or service. If the current market results (lower revenue, lower market share, increased competition) warrant a intensive plan to determine next steps. Consumer research to determine if your value proposition still is valid and to determine if your awareness has slipped in recent history is critical. The defining the competition and your position make require a change in direction.
VALUE: We reviewed our neighborhoods for comparable homes and decided that there was still a significant market for our house and its features including the waterfront property that is so desirable. As a result, we decided to redo the house to existing floorplan and amenities while meeting updated license requirements and consumer preferences, In the same way, a brand need to analyze the market, its potential, the competitive values and what makes your brand more viable than before. A clear positioning statement is necessary and modification to your brand specifics if needed is critical.
EMOTIONAL APPEAL: Not only did we want to rebuild but we also had to determine if we would want to return and call our house for the foreseeable future. So we made improvements and will replaces contents to meet our desires. A brand may not meet to needs and desires of its target customers that once made it successful. So, modifications in product design, benefits, and marketing may be necessary. This is not simply developing an new ad campaign or a new packaging, store design, or logo/graphics. It has to be relevant to more customers and these benefits have to be developed in conjunction with all operational staffs within the company to insure a complete service proposition.
COMMUNICATIONS: We talked with several realtors, developers, building contractors to get their valued opinions as well as their quotes. This took time but has paid off as we’ve gone through the construction process. The brand should be a total organizational developmental process if it’s going to be successful so internal communications as well as third party (agency, consultant, market experts) discussions will result in a more effective rebuilding process.
ALIGN YOUR TEAM. We wanted to make sure that we all agreed on our plan and had several family discussions as well as with our extended family and friends. Moving quickly to file our claims and obtain permits and licenses was critical. We have observed many other houses in our neighborhoods, especially waterfront properties, that are still boarded up and have remained vacant due to delaying action. If a brand is losing market share, it’s not going to recover if the executive team does move quickly and completely to start the analysis of what needs to be done.
IMPLEMENT YOUR PLAN. We have moved forward and have had a spreadsheet and calendar for all of the steps which has eliminated a lot of the worry and stress. A branding strategy and plan must have a complete plan and timetable to insure an effective roll-out and success.
So, we as get closer to the next step of refurnishing our home and setting deadlines for moving back we feel more positive that the future looks bright for our family.
ANOTHER CHAPTER IN RETAIL MARKETING CLOSES A GREAT BRANDING STORY.
I joined Eckerd Drugs in 1979 and on my first visit to the company, I was given a tour of the new corporate headquarters in Clearwater/Largo Florida. I was impressed by the new building and the optimism of the management as it prepared to open its 1000th stores as one of America’s top drug store chains. The company sold out to J. C Penney and its operations (and this building) were sold for offices of other companies in the area.
After I returned to the Tampa Bay area a few years later, I often drove by the office and reminisced about the memories I shared with so many great people. Later, the YMCA gym I belonged to built its new facility directly behind the Eckerd HQ building and the memories were refreshed every week as I drove by. A couple weeks ago, my entrance to the Y was closed and it was announced that the Eckerd building and parking deck were being torn down and will be replaced by a manufacturing operation. It’s been disheartening to watch the bulldozer demolish the 45-year old structure, and I thought it would be a good time to share my memories of my career job in branding and what made the company successful for many years.
Jack Eckerd started the business in the 1960’s when he recognized the potential for a drug chain in Florida. His family had other Eckerd chains in Pennsylvania, Delaware and Charlotte, so he saw an opportunity and then let his genius and common sense lead the way. Eckerd built a successful chain on an outstanding prescription business, a market-leading photo business, and a strong commitment to promotional advertising. In fact, the company offered many non-drug items that made it one of the most convenient store experiences in its markets.
The company grew through acquisitions and an aggressive real estate plan and eventually became the largest market share leader in its 15-state marketing area in the Southeast U.S.
Eventually, the company went public and with a new CEO, Stew Turley, and was successful growth story that eventually grew to over 2500 stores. Stew, who passed away last year, put great emphasis on building a loyal staff who built a strong customer service brand. Its pharmacy was always the preferred choice in its markets and the photo business grew to the point where Eckerd was the largest retail photo processing company in the nation and Kodak’s largest customer. As the market grew more competitive and take-over attempts began to bloom, Eckerd decided to go private with an LBO that proved to be one of the most successful retail LBO’s in the country. I had the great opportunity to be part of that process, and I thank the leadership of the company for it every year as I moved on. We had created several great branding strategies that gained national recognition, and we relied heavily on consumer research to build the success of these brands. The market tightened, and Stew made a monumental decision to look closely at what it would take to be successful long-term. Partnering the McKinsey Group consultants, we turned the company inside out and talked in real depth with our customers and our competitors’ customers alike and learned that despite the heavy dependence on sale/promotional ads, the vast majority shopped our stores because they need something and wanted a store that they could trust every week (sometimes more) and get a good value at the same time. The stores were remodeled to make them more convenient and appealing, our dedication to our brands was supported with increased budgets, and internal marketing became as important as the eternal media efforts. For me, it was the opportunity for the marketing career I dreamed of when I joined P&G out of grad school years earlier. We dared to be different, and the customers responded well. Increased competition by food and discount retails (and online later) continued the challenges. Eckerd divested itself of other retail ventures that drained the resources and profits, and subsequently sold out to JCP. The passion and commitment to the drug business waned, the drug chain was broken up and sold to other chains, and in 2005, Eckerd closed for good. It was a great ride and I value the relationships that I was able to develop with my fellow employees, other retail marketers, and suppliers all over the country. It enabled me to join other retailers and agencies to grow my branding expertise and subsequently start my own consulting business for 20 years. The knowledge I gained helped me launch a career as a public speaker on branding, co-author a few books, and share perspectives via these blogs which continue today.
As I look at the dust and debris that is falling near me now at Eckerd HQ, I’m thankful for this great opportunity TO help others be successful in building great brands and relationships.
Sorry again for the delay in getting this message out again. The recovery from Hurricane Helen is a long process but we are making progress. After listing as is for a few months, we decided to repair the major damages and that takes a lot of time and energy. However, thanks to FEMA and our insurance coverage we are moving forward. The continued support from friends and family has helped us move down the road to normality.
There certainly have been a lot of major events over the past couple months, but I won’t dwell on those. The retailing world continues to shrink with the closing of Joanne Fabrics and Family Dollar as well as major cutbacks at both major drugstore chains, Walgreen’s and CVS, who have closed thousands of stores. In the grocery category, Aldi’s takeover of Winn Dixie has resulted in many WD store closings which was not unexpected. Major retail shopping centers—once the major contributor to retail sales growth and expansion—has been downsized as many centers have now been demolished for other uses. Change as always is the most consistent trend.
It’s been interesting to see the change in high priced tv marking on major events like the Super Bowl, the awards shows, like the Grammys, Oscars etc., as well as many of the streamed series that have changed the broadcast landscape. If one records a show or series online, it’s amazing how the commercial breaks have gone for 120 to 180 (or more) seconds. A recent salute to the Grand Ole Opry had over 45 minutes of commercials (by my count) for a 3-hour special. If only the creativity of those hundreds of messages had improved as much as the frequency!
As I have every year for a while now, here is my review of some of the spots that ran in the super bowl in February. There is:30 seconds of air time. There’s no question that the media value is there, but the production costs for these spots has also gone off the charts as well. Unfortunately, the creativity, in my opinion, has not kept pace with the costs. In my experience on both the agency and advertiser side, we always set a production cost for spots based on the planned media expense for the spot. A spot that might only run for 3 days behind a weekend event certainly didn’t warrant the expense for one or more that were part of an ongoing campaign that branded the product or service over an extend schedule. Creativity and an effective branding message was just as important in all of the schedules- short and long.
I’m not sure that was the case for this year’s Super Bowl mega-spots. It seems that all that was important was to get a celebrity (or several) that may or not be consistent with the brand’s target or come up with a tie in with a major movie release. Or just come up with a message that’s so obtuse that the viewer is left asking “What are they advertising in that spot?” Effective, break-through creative is the direct result of an effective, well researched brand strategy. This holds true no matter what the media cost.
Here’s a few of this year’s spots and some brief observations.
PRINGLES MUSTACHE
I’ve always liked Pringles but honestly, I never noticed the mustache or what it has to do with the taste of the chips.
DODGE RAM GOLDYLOX PITT
I don’t know what Goldylox has to do with a big, honkin’ pickup truck but having an expensive Brad Pitt really is a stretch.
HELLMAN’S MAY-BILLY CRYSTAL. HARRY AND SALLY.
Ok, I’m a big Billy Crystal fan and I love When Harry Met Sally, especially the famous diner scene. This spot uses the celebrities and the movie reference to perfection—just like the Mayo.
INSTACART HOT DOGS RUNNING
I wasn’t sure if this was a spot for Kool Aid, Green Giant, or Oscar Meyer hot dogs and it really didn’t convince me that InstaCart was any better than Uber Eats or DoorDash.
This spot uses celebrities (Matt Damon and David Beckham) with a suprising premise and it works when they both like one of my favorite beers.
ULTRA PADDLE BALL.
Another. Beer commercial with an interesting premise that appeal to a couple different age groups and capitalizes on the paddleball craze. The beer may be mediocre but the message works here.
BUDWEISER. CLYDESDALE RETURNS
Another beer commercial that probably woudn’t work with out the long history of Bud’s Clydesdale spots over the years always memorable and this is no exception—except its length makes it an epic.
DORITOS TROJAN HORSE
Doritos once again spends and spends on the Superbowl. Here are the short spots. I think the Trojan Horse was the best.
This blog was supposed to be published in October, but Hurricane Helene had another plan. As I mentioned in the revised intro video on September 29th, our world as we know it got turned upside down when our house was totally flooded by Helene. Almost all of our worldly possessions were hauled away to the county dump, including much of my office equipment. As we set about the task of dealing with insurance adjusters, trash haulers, home repair companies, and locating to a temporary apartment, we got a whole new perspective on what’s really important in our lives. We are now preparing for a different Christmas, so I thought I would share some personal thoughts in this annual holiday blog message.
We had decided to downsize last spring leaving our beautiful home on the waterfront of 28 years to settle into a smaller, less storm prone setting. The beauty of our location convinced us to hold off for another year. Not a good idea as a mini tsunami deposited 2 feet of murky water throughout the house. We watched helplessly as five trailers full of most of our furniture and other possessions were hauled away . While we were emotionally distraught, we were comforted by the love and support of our family, our friends and our local community. Once the pain eased somewhat, we realized that we, like most of today’s consumers, had accumulated a lot—a really big lot—of STUFF. All of this could be replaced and as we prepared our inventory for the insurance claim, much of that stuff hadn’t been used in a long time and should have been cleared out or donated a long time ago. Honestly, as we watched many of the holiday commercials and internet messages, our desire to shop or accumulate more has lost its appeal. What’s more important is the love that we need to share every day and the appreciation for those who share in this life we lead. The messages and calls that we received with offers of help with the cleanup and move, the offers of lodging and meals, the offers from former business associates for support, and the true friends that reached out to us has reinforced the true spirit of Christmas. I know that many of our neighbors’ and fellow citizens in Tampa Bay have experienced the same support. We hope that this spirit expands beyond the storms and damage into our government, our business world and to our world’s leadership now and in the future. Let’s re-focus our energies to our families, our true friends, and the spirit of love.
Merry Christmas.
Ken
PS: Here a few of this year’s holiday spots that I feel capture this spirit as well.
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